This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Maxwell Corporation is trying to predict its manufacturing overhead costs for the upcoming year; ... (Read 68 times)

Awilson837

  • Hero Member
  • *****
  • Posts: 509
on: Jan 5, 2020
Maxwell Corporation is trying to predict its manufacturing overhead costs for the upcoming year; they are debating the use of the high-low method versus the use of regression analysis.  They have gathered information about their manufacturing overhead costs in each of the past six months. A table containing their cost data and the associated machine hours in each month (the cost driver) follows.

MonthManufacturing overhead costsNumber of machine hours
April$22,00012,250
May$22,86012,510
June$21,60011,280
July$21,80011,410
August$21,25010,980
September$21,93011,670

The company performed a regression analysis using the above data and had the following results. (Note: the results are excerpts so not all of the regression analysis results are presented.)


Required:
1.  What is the cost equation if the high-low method is used to estimate costs?
2.  Using the high-low method, predict total manufacturing overhead costs if Maxwell
Corporation uses 12,000 hours.
3  What is the cost equation if regression analysis is used to estimate costs (use the results from
the regression analysis provided)?
4.Using regression analysis, predict total manufacturing overhead costs if Maxwell Corporation
uses 12,000 hours.
5.Which method is generally the best predictor of costs? Justify your answer.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Awilson837 on Jan 5, 2020

lucas dlamini

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jan 5, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 64% of students answer this correctly


Awilson837

  • Member
  • Posts: 509
Reply 2 on: Jan 5, 2020
Wow, this really help

ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ... During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ...
The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ... The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ...
Average Number of Days per Year with Thunderstorms Average Number of Days per Year with Thunderstorms
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Video: Replication of DNA and Chromosomes/ How do cells replicate their DNA? (Animation) no Audio

For a complete list of videos, visit our video library